Entry Price Difference


#1

I have noticed that at times the entry price using Instant Submit is a couple of tick higher/lower than the market price on a long or shortt trade.Is this the offset effect.

As an example I just entered a long trade on the 1.0724 bar using the IS and got an execution at 1.0726. The trade is currently unprofitable by a couple of ticks, if I had gotten the 1.0724, I would be showing a small profit. Is the simple answer to enter the trade manually at the price I want, or does the offset also apply to manual trades.


#2

The offset in no way will effect the price you are filled at. You will be filled at the best avail price on Nadex. Also keep in mind, you say filled on the 1.0724 BAR" If you are looking at your chart, your chart will not be the same as the Nadex indicative. Prices can change quickly especially if the market is moving and you may not always get filled at the price you see listed when you are entering a ticket, the prices can change, but it is no way at all effected by the offset setting.


#3

You have an offset of 10 ticks on the instant submit as a default. That means the order is submitted at 10 ticks above market on a buy and 10 ticks below market on a sell. This helps you get filled without issue. You’re always submitting a limit order so it is for best price. So if you submit at 10 ticks above the market and the market is 8, 9 or 10 ticks lower than that you will get filled at say 8 ticks lower.

If you would have entered the order at 1.0724 your order would have got stuck in working and you would not be up or down at all but just sitting there waiting hoping the market would pull back to fill your trade. Try doing a manual order to buy below the offer and you will see.

In addition, there is always bid/offer spread in all markets you will be down the difference between the bid (sell) and offer (buy) price the instant you enter a trade as that would be the exit price.